my colleagues have put up with a lot over the last nine months. pregnancy can make a gal a bit spicy, but they never complained. you kept tuning in. i thank them and i thank you, and i will see you all after sunset this fall. thanks for watching, everyone. i'm megyn kelly. "studio b" start next. >> so proud of you, megyn. >> thank you, shepherd. >> i can't wait to meet the baby. >> we are about to find out what the baby is. >> i wondered if you would make it through the program. >> can i tell you i had labor pains on the set on monday? my brothers here were getting a little nervous. >> that would make good tv. >> i'm sad we fired o'reilly. i know you needed a time slot. >> it is awkward for him to find out this way. i'm glad you put it out there. >> i'm sorry, bill, but you need more time to write books and it will be great. you will be on from 8:00 until 11:00, right? >> thank you. that's three hours. let's put out the rumors right

now, put an end to them. it is nonstop megyn kelly. >> good luck and enjoy and we will miss you. >> thank you, my friend. it has been a pleasure. >> congratulations. wow, we have news today. the news is breaking around the world. we are getting word now that state-run newspaper in egypt, the best source we can come up with is reporting that the country's military has now told the duly elected democratic president of egypt, mohamed morsi, you are no longer president. a military coup has just happened. the military has taken over. they are moving in to take over the government. a live look at anti-government protesters in tahrir square and now a statement is being read on state tv. is this accurate? this is new to me. this has just happened. a statement is being read. we were told that members of different forces within the country, the military would speak and the members of the muslim brotherhood, a pope from hoot religious group -- a pope from another religious

group would be coming up. do we have translation for this? i know we have translation. oh well, we don't have translatio getting translation in the background. we will let you know what happened. the military had set a deadline for president mohamed morsi to strike a deal with those protesters. the deadline passed four hours ago and morsi refused to step down. the pro morsi demonstrators gathering at a mosque across town. you can see here the difference between those two rallies. a shot of morsi and egypt's top general together in january. edge pledged to die for his cause. soldiers surrounded the barics in cairo and aids say that's where the president has been working recently. it is unclear where the president really is or what the soldiers are doing to protect him if anything. troops in armored vehicles in the military have positioned themselves in the streets of cairo. they have been guarding the state-run television headquarters in the city. it is our understanding they

came into the newsroom of state-run television that those who were not essential and on the air at the time left the building and the military took that over. the staff left. remember, egypt borders libya and israel, and it is considered america's most rpt poo -- most important arab ally and no one is running it. let's listen in and translation now. >> and committed with all duty and responsibility. the armed forces has exerted lots of effort during the last few months, hard work in a direct and indirect way to accommodate the internal situation and to carry out the reconciliation between all political forces including the presidency. since last november, 2012, they started to call for a

national dialogue with all political parties has responded, and it was rejected by the president in the last moments. and then after that many calls have been made and initiatives from that time up to this date. the armed forces have also approached more than once to present a strategic situation offer internationally and exter nationally which included the most challenges, serious challenges that are faced by the nation at a security level, economic level, political level, social level and the vision of the armed forces as a national establishment is to accommodate the division between the parties and the reason for congestion as to face challenges and risks and

to get out of this situation. and doing the framework of following up this crisis, the general comrade of the armed forces has convened with the president at the copper palace on the 22nd of june, 2013 where they have said to them that it had been rejected, that if it refuse that the national assemblers to be assaulted. and threatening all of the people, the egyptian people. the hope was made that this would be a national governing and to have a road map of the future, to and trust and stability for these people, to achieve its ambitions and hope. however, the letter made by the president yesterday night

before the end of the 48 hours noticed came meeting the approval of the claims made by it is egyptian people. they stated that the armed forces pays the national responsibility and historical responsibility to consult the symbols and national symbols, young people religious without elimination of any party. it had been agreed is about the future including h initial steps to achieve an egyptian strong community and doesn't exclude any of its members and to end up the division between the people. this road map has included.

stop work wght constitution temporarily. the head of the constitution court shall give all parties of the court to carry out presidential election while the head of the constitution court shall take the running of the country during this transitional period until a new president is elected. the head of the constitution court has the authority to give the declaration during this transitional period and to form a government with capabilities who can have all of the power to run this transitional period. to form a committee of all parties, of all, to review all of the constitutional resolution which will propose the constitution which has been stopped temporarily.

to call the constitutional -- to approve the draft law for stoping the collection [inaudible]. put an honor decree which gave guarantees to the media to work with credibility and to give the national interest to man. to take the necessary implementation, to enable young people to work into the national institution and to take part in decision making in all different aspects. >> this is an extraordinary announcement that will go on for some time. when they do, they milk the moment. the subject to this is the military said they are exercising patience and trying to get as many parties as possible to communicate.

they established a national dialogue, but president morsi is not ready to engage and that lead to them intervening and removing president morsi from power. when he said those words, this was the reaction in tahrir square. we have plenty of shots in the square, but you can also see the one where i am now, fireworks, cheering, a wave of support as the information spread through to the people one after the other. we now have tens of thousands of people celebrating the demise of the political career of a man they only elected with 13.2 million votes a year ago. his performance as far as these people are concerned was just not good enough. let's listen to the noise coming out of tahrir square.

>> this is alexandria in cairo. city after city, people millions upon millions upon

millions of people in the street to celebrate the extraordinary announcement which we all just heard. egypt, our greatest ally in the middle east, a country of some 80 million, the constitution has just been suspended. the military has in essence overthrown the president. the head of the constitutional court, the chief justice of the constitutional court appointed the interim head of state. mohamed morsi, elected last october as the democrat techily elected president of egypt has been ousted by a military coup over the past three hours. as we go live from city to city to city all across egypt, spontaneous explosions of fireworks, cheers from people of all ages. the night sky is lit as the government has now been handed over in essence or taken over by the military. there will be now a parlimentary law which comes into affect. there is a national reconciliation committee that will involve use.

they will select a new parliament and they will have new elections elections and egypt's democracy lasted just a few more months. this country ruled by military law for some eight decades is there again. and in one of the most difficult regions on all the earth where the united states has some of the most pressing foreign policy concerns, there is upheaval. the will of the people has been overturned by the new will of the people because as they put it, their duly elected president was turning the country into an islamist state and changing the rules of the game in front of the people against the will of the people. and now the people's military has come in and taken over. imagine something of this nature at the white house. it is in essence what has happened today in cairo. we are getting coverage with cameras all over the country. it is with the help of our sister network sky news for the united kingdom in europe. let's litsen in. listen in.

>> the decision has been made on their behalf and the fact that their leader that they elected one year ago was taken aside by the military leaders here in egypt at 7:00 local time and quietly told that the game was up. he wouldn't engage in a national dialogue guided by the armed forces and that he hadn't done the job they expected of him. that in the last six months he started pounding an agenda that many thought was unacceptable. and now they have to accept that that is over. no violence. no clashes with anti-military demonstrators because they are

surrounded by soldiers. the army has sealed off entrances to their buildings. they put barricades around the area. they have locked them down. they have to maintain peace on the streets of could i -- cairo. all they can do is lessen to their own -- listen to their own leadership. the noise here in tahrir square can be easily described as deafening. these people will now cheer for an unspecified period of time. there is plenty of energy left in this crowd and the others around cairo, alexandria and all of the other cities where these demonstrations have been running now for five days. a determination that the egyptians have learned for better or for worse is that if they are not happy, they can

take to the streets and people will listen. egyptian politics has never seen anything like this before. this extraordinary sight, also soaking up the atmosphere and the extraordinary energy behind the response to that announcement confirmed on state television by the man in uniform . not announcing he was taking over, but announcing he was facilitating a new is quite extraordinary. >> it is another transition. it is still part of the democratic process even though it is a could you data which is democratic. it is the will of the people and it is what seems to be a

majority of the people. the presidential palace is looking right now. it is in the second city, alexandria. i was struck when we saw the general coming on to the television and this was a man appointed as defense minister just six months ago by the very man he has now deposed. he was the defense minister and also the head of the military forces, the army, the navy and the air force. behind him when he spoke were the flags of the various branches of the military. the message, the military united. to his far left and to the far right 12 million christians and next to him the defacto leader of the middle east.

he commands the highest learning of our university. it is a clever move to bring him in. he is saying i support this. and that will go someway to draining the anger of the conservative religious people who believe their democratic rights have been stolen tonight. and if they can get through it is going to be a difficult night. if the elections are held in a few weeks, perhaps those against the anti-democratic sentiment, they can see it as part of a transitional period. it is never easy to give birth to the democracy. these people will come back if given time, if the army tries to hang on to power. i think the army knows that and so the elections will come within months and quite possibly weeks.

>> he says on the 22nd of june they started these negotiations. they encouraged and arranged and facilitated an active dialogue this -- that president morsi would not engage in. they are placing thelzs as the arbitors. put out to the restpositive of the middle east, is it not? >> there is a problem with that argument and that is that president morsi several times invited the opposition to come into dialogue and they refused. what we saw in the last few days was them knowing that they have the streets. they had the numbers. it was not in their interest to compromise. they knew all they have to do is keep doing. morsi asked them to come to the palace to negotiate. they refused. the military asked them to come and they -- [inaudible]

this is their way of winning last year's election which they lost. supporters wept away from morsi. now we will see in these new elections and will they come to power. the muslim brotherhood retains core. they haven't gone away. the people we see celebrating tonight, tomorrow they will divide again into the dozens and dozens of passes and opinions. the challenge for them is to unite, to come together, to compromise. it is part of democracy. compromise is not a dirty word. it is something they have not yet learned. they have learned the power of the streets again. they learned they can bring the army out to further their aim. the next step is to learn the act of compromise and coming together as a unified move

meant and not -- movement and not 57 different ways. >> they would say to you on the streets weerks are egyptian. we are not some johnny come plately middle east country. we are the heart of the middle east. we are the senior citizens in this part of the world. we did it wrong once. we will fix it and do it again and keep trying until we get it right. there is a positive spin that some will surely take and try to push forward. >> i don't want to be too negative about this or too positive. we don't know exactly what has happened and what the direction is. this can be the expression of the will of -- it is wrong when we say the will of the people. it is a trite phrase. there is never one people. there are many factions. [inaudible].

where do they go now? what do they do? where is their faith in democracy? it is an interesting period. i suspect the islamic islamists experiment in egypt is over for the time being. i suppose we are going toward nationalism, but -- [inaudible] >> are you concerned this could just be a cycle? that indecision will bond the public 18 million people plus? >> that is a problem. i am saying it is too early. yes it might be a hiccup, an adjustment as they give birth to democracy. is might well be that and let's hope it is. it is not also possible that the lesson learned was two and a half years ago and you come on the street and get rid of your dictator. a year after you elect somebody democratic and instead of waiting three years and going to the ballot box

you come out on the streets and you force the army's hand. so in a year's time if they still don't like it and the key to the economy and good luck with that. you are not going to fix anything unless you get the economy right. you are not going to solve all of the problems of 80 million people unless you get the economy right. yes it is the streets that brings down the politicians. it is getting the economic track right. so it might be good. it might be part of democracy [inaudible]. >> this is the closely development of a country or a country slowly tearing itself apart. let's listen again to the noise coming from tahrir square.

>> it certainly is extraordinary to watch. it is a moment of great celebration. the military has ousted the government. the people have said we need talks. the people said you are not doing what we elected you to do, mr. president. he brought in his islamist ways of thinking and his islamist rule. it was going farther and farther toward the islamist rule. 70% of all egyptian people were under the age of 30. 70%. they will now be a part of the

medical terry of -- of the military of reforming the government. they are working in britain and there is no way to know what tomorrow brings. certainly they will have new elections in a matter of a few short weeks. hopefully they will be able to keep the two sides in this conflict. make no mistake about it. president morsi and his islamist government have great support within the country. he was elected democratically albeit a narrow margin 52-48%, but he did have a great deal of support among the islamist faction of the country. whether they will rise up in someway against the military organs their fellow citizens remains to be seen. we certainly hope not. what the world needs is stability. the military reflected that a short time ago. watching over it it all from tahrir square for us is our correspondent connor powell. he has covered wars in afghanistan and uprisings in hotspots all-around the world for us.

it is my understanding that these crowds are bigger and louder and more june lent than when -- jubilant than when morsi came into power. >> we understand that these are the largest crowds from even before the revolution two years ago. the local staff we have talked to hearsay there are streets full of people tonight that have never been full of people before. even during the height of the revolution two years ago. by all estimates these are the largest crowds. our local guys say that remember two years ago many egyptians will go out and protest against the government and against the mubarak era and against the military. now the egyptians are fully comfortable to go out and to protest. they came out in mass on sunday. they nef left tahrir square. they never left the other cities and countries across egypt and they have been partying all night. it started yesterday because they believe last night the military came out on the side of the opposition here against the morsi regime here.

the people here in tahrir square have believed the last 48 hours or so that the military was going remove morsi and the parliment they so disliked. and now their wish has come true. they have been celebrating with this level of noise for more than 30 minutes now, shepherd. >> it is quite uh -- it is quite astounding. let's go to jennifer griffin now. connor, stay there. big picture, what are we seeing here? >> shep, what we are seeing is in essence it is a military coup that took place, but it is a military coup as you heard our sky counter parts talking about on the ground there, it is a coup with a transition. we know that the pentagon has been in daily discussions with the heads of the army, the defense chief who we just heard from, they have been very reluctant to talk about what message they were giving

to the military. they didn't want to be seen. the u.s. does not want to have been seen in having any part of this coup. i am also told by sources that the pentagon and the pentagon officials did not tell the army not to carry out this coup, not to push morsi out because in essence it was very clear when you have 30 million people in the streets that that is also a democratic process. what you are seeing here is the army trying to keep some kind of peace and keep this thing from boiling over into violence by appointing this new interim president and getting to elections as quickly as possible. the military in egypt does not want to rule egypt. they saw how martial law went for 16 months. it was a disaster. there were large crowds that over through the egyptian military in essence when they were mismanaging things for 16 months. the military in egypt, however, is the only

institution that is seen as viable at this point. and we have seen some reports among israel among other places suggesting that israeli's leaders are also pleased that the egyptian military took this step. they never were comfortable with president morsi and the muslim brotherhood in charge of egypt. i also heard from sources here in washington that the saudi arabian government is very pleased that this has taken place. they obviously will not be pleased if the military holds on to power or if a civil war erupts. but this was the only option at this point in time according to u.s. officials that i have spoken to and from reports from the region from israel and saudi arabia. >> the liberal leader, whom we heard so much from the 2011 uprising happened. he just said and i quote the 2011 revolution has been relaunched. in other words, the arab

spring of 2011 is now the arab summer of 2013. the road map meets the demands for early presidential votes. again, jennifer, this is all well and good and it is great to see democracy, non-democracy division to come in and do its work, but the truth is with this sort of thing you never know what you are going to get. it is certainly possible given the numbers of the population spreads there that someone else from the muslim brotherhood could take that thrown again. >> do don't forget the muslim brotherhood is the most organized opposition group in egypt. they have very good organization at the ground level. if it goes to an election, it is still possible the muslim brotherhood could win again. but it is also important to remember that president morsi, even though he was democratically elected last october, he took some very anti-democratic measures in november when he changed the

judiciary. he inning chaed the constitution. he changed the constitution. he started to put into place things that were anti-democratic and islamist in nature. essentially what you are seeing right now is egyptian people saying that they do not want shaw reallah and they -- shari allah and they do not want the muslim brotherhood changing the constitution. if the muslim brotherhood wants a seat at the table and wants to be the president or part of the parliament, then they have to remain democratic and not try and force their own version of democracy, if you will, and shari allah down the people's throat. >> we are cycling through and we have help across egypt and this is a pro mohamed morsi, a pro morsi group that has gathered. there are more than 300,000 it is my understanding in cairo. there seems to be calm now. are there concerns there or anywhere that some of those who are -- those who were on

the side of the president might turn this into something violent? >> i think there is always concern when you have this size of crowds and you have competing crowds. they are equally big from what we are hearing from our reporters on the ground. however, what i am hearing from the pentagon officials and other u.s. officials watching this closely is that they feel very confident that the egyptian military is relatively in control. remember that the u.s. has the egyptian military securing its embassy right now. the u.s. has not moved any marines into position to try and secure the embassy. they feel the egyptian military is stable and it is in a position to protect that u.s. embassy. that shows how much faith there is in the institution of the army right now. the army moved its tanks in and around the areas where the muslim brotherhood supporters and the pro morsi supporters were got -- gathered.

they were surrounded by the military. the military will not let them go and start connecting with these anti-morsi demonstrators. again, the next few hours will be crucial. it is not clear anytime you have these crowds how things will go. right now this was the only option in terms from the point of view of many here in washington who were watching this. they felt with that many protesters in the streets demanding the president leave that some sort of democratic transition had to take place and the army was best situated to usher that through. >> jennifer, thanks. our folks on the ground from sky news and fox news are telling us that these two groups, the pro morsi group and the anti-morsi group which rallies were about a half mile apart have come to within a few blocks of each other. the new military -- well, the military leaders who are now in essence in charge of the

governmental us the state police will go in and act if violence comes. it is almost like two groups of rival schools are coming together of they -- together and meeting on the street. the fear is that violence will break out just haphazardly on the streets. egypt's leading muslim and christian clerics backs the road map that suspends the constitution and calls calls for early presidential and parlimentary elections. they are screaming in the streets and laserring the helicopters above. jonathon hunt who has worked in that region, it is an extraordinary thing to see. >> absolutely extraordinary. we are witnessing and have witnessed here a military coup. itit is a bloodless coup, but a bloodless coup for now. the great concern tonight is what the muslim brotherhood leadership tells its supporters to do next. the military general who we heard making the announcement

has said the military will deal, quote, decisively with anybody who perpetrates any sort of violent act. if the muslim brotherhood sends its supporters on to the street with orders to attack its saw pone nents, then the military is in the middle. the military will have to referee this. as i say, it is a bloodless coup, but the best you can say right now is that it is a a bloodless coup for now. these are difficult, difficult hours ahead for the egyptian people. >> the muslim brotherhood must know that if they play right here, once the elections come along in a matter of a couple weeks, and we just got word the time frame of the egyptian elections is to be determined by the interim administration. the army plan is preliminary. this is from an army spokesman. everything is in flux. you would think the better course of action for the muslim brotherhood would be to slow down for a minute and hope they can get control again during the elections. >> yes, perhaps replace morsi as their leader and put up a new candidate. as jen griffin was correctly

saying, they are by far the best organized political grouping in egypt. if they play their cards right here, are you absolutely right. they may still -- well, remember they got 13 million votes last night. that's not an insignificant number. what is important is how the opposition now groups itself for that presidential election. remember they were hopelessly split last night. last time. they put up stew many candidates and that allowed the muslim brotherhood in. if they can come united around one candidate, perhaps the liberal leader, the former head of the iaea, if they can coalesce around him, then perhaps the liberals would have a much better chance. there is so much going to happen in the coming hours, days, weeks that it is impossible to pre -- predict where this fluid situation is headed next. >> connor powell over tahrir square for us in egypt.

is it your sense things will remain peaceful and the military has things under control? >> shepherd, you have to remember the muslim brotherhood just as we found out found out they no longer have a president. the rhetoric in the past 72 hours has been intense and members of the muslim brotherhood saying they will die for this president and die for islam. the idea that things are peaceful right now, they may be behind me in tahrir square, but we don't know what is happening outside of tahrir square. the rhetoric the past few days has been so intense and inflammatory that it is possible that the muslim brotherhood will sit and wait for the next elections. they played by the set of election rules laid out a year and a half ago. they lost their president and they will lose their parliament and lose their constitution. this is is not a group that is inclined for democracy. generally they want to see their rules, their institutions in place.

so the idea that the muslim brotherhood will sit down and take this seems a bit more -- farfetched right now. it does appear to be people at this -- peaceful at this second, but things can change in the coming hours and possibly even coming minutes, shepherd. >> when you boil it down and think about the root of this, they went to great lengths to make sure that all voices were represented. the opposition side last time around as jonathon mentioned -- if i remember correctly there were 17 candidates at one point. there was no way for that opposition side to get a foot hold. the muslim brotherhood won this thing fair and square. it was a freely elected, duly elected and democratic government. the head of the government, mohamed morsi and now all of a sudden the people don't like what he is doing. there is a process for that. there are new elections scheduled in a few years. the military has come in and

ousted the government. if you are a member of the party that voted for the president are you just sitting around cheering? i certainly say not. jonathon? >> what is interesting now is that we have the chief justice of the constitutional core. essentially their supreme court. he is going to run the country now as the interim president. there is no doubt who is really running the country. it is the military. they have always been the most powerful single institution in egyptian society. they have also been seen largely as independent. it is interesting to know that general al-sisi was appointed by morsi a few months ago. he was said then to be very close to the islamists in egypt, perhaps too close. well he certainly has now proven his own independence and what happens next is

critical. whether the military now goes forward with these elections and it says it will allows them to be free and fair and it allows them to take place within a short time frame. if there is chaos on the streets the military has the excuse not to hold the election. it is difficult to predict what will happen next and it remains -- el with, you kwan see the joy on the streets of cairo and the other egyptian cities. it remains a deeply, deeply dangerous time. >> mohamed morsi can be an important voice here. even though he was ousted, mohamed morsi we are waiting to hear from. will he step to the microphone saying this is the will of the people? i have done my best. i was wrong. muslim brotherhood followers let's calm down. we just got our first indication from mor sigh. i can tell you his facebook account quotes morsi saying he rejects the army statement as military coup. an interim administration that

will govern egypt in a military plan will determine when the presidential and parlimentary elections will take place. according to the army spokesman. for this moment at least it sounds like mohamed morsi was ousted from the presidential palace is not willing to play along with the military which he has no control. there is a shock. a fox news analyst now and what is your impression? >> this is what happens, shep, when a nondemocratic organization is democratically elected in government. the choice they make is not when they come to government it is how they will govern. the real player is not really the army. it is the 22 million people of civil society in egypt who did not -- who many voted for him. when he started to appoint governors who were radical, he changed the constitution to become maury strict tiff -- more restrictive with women and minorities and then that

changed the right of the opposition in egypt. true he is the democratically elected president of egypt, but he did not act as one according to the opposition. >> the united states likes to call -- in lebenon likes to call hezbollah a terrorist organization. in lebenon they call it part of the duly elected government. not exactly a democratic body and not exactly what americans think is a good thing, but very, very popular ease early andly in the south of lebenon. here it is similarly this very religious group with strict muslim ideas came into a sis stesm -- system and it didn't work. >> hezbollah is popular in its own constituencies and not the others. that's why the reason there is a civil war in syria and possible possible -- possibly one in lebenon. can morsi and the muslim brotherhood accept what has

happened and organize themselves as the next opposition? this would tell more about the future of egypt. >> for our viewers who say what is so awful? they have a duly electedment and a duly elected government. let me tell you after 2012 and this government came in to play. murders rose 1 theater%. robberies spiked and kidnappings rose. nearly 200,000 christians fled egypt after a series of bloody clashes that began with the revolution in 2011. the ranks of the poorest, those that live on less than $2 per day have grown from 40% then to 50% now. economic growth that was at 7% prior to the revolution is 1%. hard currency research stands at $sex teen billion. barely enough to cover three months imports. down from the february

11th revolution. food price ropes 8%. the egyptian pound has last 12% since december of last year. the general debt has risen. tourism revenue is down. i can go on and on. egypt is in crisis, economically, socially and spiritually. you can see the reaction on the street. >> that is what prompted all of this. that's one of the reasons you heard the chief of the army saying the country would be run by a techocrat. we have seen it again and again and again. another po nie t on president morsi. there is a verified twitter account. as of 9 minutes ago tweets were being sent out still in the name of president morsi. one said the armed forces announcement is rejected by all free men who struggled for is democratic egypt. and then it says president mor

sigh ask -- asks for peacefulness and no shedding of blood of country men. i saw one report that said president morsi has left the palace and headed toward an undisclosed location. as you rightly said, what president morsi or former president morsi says and does in these next few hours is going to be critical whether this remains a bloodless coup. >> it is 13 minutes before 10:00 p.m. in egypt. what might first light look like in this country? >> your numbers have been very important and helpful in understanding why not the fact that the army has done so, but there were 22 million people on the streets from sunday to today and another 20 million have signed a petition against morsi. this is bigger than the opposition and bigger than the army.

it is aided by facebook and youtube and all we thought would be the arab spring. it said enough is enough. we need management for the country. it is more than religious and more than political. it is economic and social. >> wouldn't you guess they will get on with elections as quickly as they can clear the streets almost? >> they should do so, but give at the same time some time to organize. eye jipt needs new ngo's and political parties. they can't go back to the old political parties and there needs to be stability and the army want to make sure that they would not allow jihadist groups as was the case in steer yaw or algeria to take advantage of what has happened. >> connor powell is above tahrir square. you have witnessed a bloodless coup, the overturning of a dually elected government. 2* must be quite a scene. >> they are partying in tahrir square. you can see some fireworks,

but i am looking over the entire city of cairo and there are fire, woulds going off everywhere. it is an incredible scene. like i said there is a lot of jubilation among the opposition here. it is incredible. >> connor i know you have been involved with a lot of these sorts of events over the years as your work for us as foreign cor vee upon dent. to see these two sides clashing and the rhetoric you described and to have it all culminate in this moment i wonder if you can reflect on it for a moment. as an american and as a journalist how does it all move you? >> it is interesting. many people that are here the more secular egyptians have a distaste for morsi. they talk about democracy and ignoring the fact that not only was morsi elected, but they passed a constitution with two-thirds. that seems like democracy as an american.

people here argue otherwise. he ignored the americans that didn't vote for him. they have a say seen when they are not elected to power they have a say here. that's what the people in you tay rear argue. they must be part of the conversation and the dialogue. 1k3* going forward whether that will happen is unclear. it was one year ago they were arguing and protesting the military. now the military is back in control. shepherd, st's a strange back and forth. they are getting a second chance at democracy. what they make of it is unclear. >> we will rely on your eyes and ears. extraordinary to see these close ups. it is almost as iffy jipt has won the world -- if egypt has won the world cup. people are carried on piggyback and people are

standing and dancing on the streets. the fireworks on the horizon. the lasers putting words on walls where just yesterday it said morsi with an x across it saying you must go. now he is in effect gone. he is leading through twitter and facebook it would appear continued resistance to what is clear a a coup. you wonder what first light will bring. mr. may, your thoughts. >> shepherd, if i were you i would look across town at the pro morsi rally going on. >> we are. >> you are. and the images of tahrir square are arresting and the images from nassar city are important. the world is now waiting to see how the muslim brotherhood will react to this. there are deep divisions in the muslim brotherhood.

i wouldn't anticipate them speaking with one voice. you have forces that want to engage in civil disobedience and take a more modern track. and others that want to engage in violent protests. you have seen the mainstream leaders of the group say they are willing to spill their blood for their cause and i think that is going to be important to watch. president morsi views himself as the president of egypt. i think it will be important to keep an eye on them in the coming hours, especially as this protest starts to break up and to see if the military can continue to contain the violence as they are trying to do clearly. >> i would guess that as these crowds begin to disperse as they no doubt will, after those jumping and screaming have won the day and the

government has been ousted. they will come in and get attention and act post haste. >> and they should. as your previous guest just mentioned, the islamist camp is not unified and many moderates would like to join the process and become the new opposition, but the more radical jihadists engaging in violence. they riel -- they will actually go back and form their own political party. the army is the only institution at this point that can produce stability. it will not be a military government. it will be an interim government and there is a big difference between the two. >> extraordinary pictures. to see these sights of jubilation, we witness them again. what they decided last time did not work. now they are beginning the process of trying again. isit will be a rocky road.

john bolton is live on the line with us. what are your thoughts? >> it is a straight out military coup. there is no am bough ambiguity here. they announced they ousted president mors expi while they say they will act behind the scenes, to be yously the government they are installing is completely under their control. i think the reaction of the muslim brotherhood is to split at this point. some will try and form a more modern party. it will radicalize many in the brotherhood. it will drive more into the arms and the risk of violence is highment the military needs to act quickly to establish control. i don't think this is the end of the matter by any stretch of the imagination. the opposition has many groups with many agendas. a very decisive step by the

military, but we are a long way from the end of the story. >> certainly. w45 is your sense of what tomorrow may look like? >> if i was the military i would allow the opposition to have their moment in the sun expwh then get them off the streets and get everybody back to what should be job one which is getting the egyptian economy out of the tank. one of the reasons there was so much opposition to more see is he had taken -- he took a bad economy and made it much worse. he focused on trying to implement his saw -- his agenda which may have been acceptable if he had gotten the economy back on trackment he lost on two counts. a poor performer on the economy and many thinking he wasn't even trying. if the military can't show to the rest of the world egypt is back on a stable path, let's get them back in or the

situation will get worse. >> it is extraordinary to see. >> it is stunning to see. we are watching history unfold before our eyes. a military coup in egypt. just picking up on what the ambassador was saying. egypt's second biggest group has agreed to this road map. they said they have done so so the country avoids conflict. that is an important development. they are not as powerful as the muslim brotherhood, but they are if anything even more radical in the factor on board where this could be critical. >> thank you. >> thanks to all of you. you know, you never know what will happen when you get up in the morning and come to work, do you? over the past hour of "studio b" werthrow of a government. a military coup. the people who duly elected the president of the country said mr. president you are not getting this right. the military came in and ousted him.

this is the beginning of a new story. it is not the end of an old one. we will cover it for you. i'm shepherd smith in morning. for all of us on "studio b" thanks.ttra we will see you on fox report live.

get the paramedic stat. this health care law is flat lining fast. to the the doctor who told president to his face that this was an economic emergency in the making. the the doctor is back with his latest prognosis. the emergency is here. it doesn't look good. welcome, everybody. i'm neil scr avuto -- i'm neil cavuto and so much for this. >> it is time to recognize that this is working way it is supposed to. >> but is it? president just putting a key part of the law on hold. that will lead to larger companies that do no comply and won't kick in for aer yew. now more if it is time to pu